BAKU, Azerbaijan, Feb. 20 (UPI) -- In a full-year 2014 report, BP's subsidiary in Azerbaijan said progress on gas developments meant to aid European energy security was ahead of schedule.
BP-Azerbaijan said it had more than 9,500 people employed in construction activities associated with the Shah Deniz II natural gas field in the Caspian Sea. The field's reserves are slated for transport through a network of pipelines dubbed the Southern Corridor for Europe.
The company in an e-mailed report said Shah Deniz II made "very good progress" last year, with offshore and onshore production infrastructure moving "ahead of schedule."
"Most of the major engineering, construction and supply contracts, valued at about $10 billion, were awarded and work started in all construction areas across Azerbaijan," it added.
More than 500 billion cubic feet of natural gas per year is slated for exports from Shah Deniz II to the European market through a network of 2,100 miles of pipelines.
BP has awarded more than $1 billion in development contracts since selecting the Trans-Adriatic pipeline as its option for Shah Deniz II gas in 2013.
European countries get about 20 percent of their gas reserves from Russia. Most of that runs through the Soviet-era pipeline network in Ukraine and ongoing conflict and economic issues there add a layer of risk to European energy security.
First gas from the second phase of the Shah Deniz gas field is expected by Europe in late 2018.
